AL HB451

Amends Section 35-11-211 of the Code of Alabama 1975 to clarify that mechanic and materialman liens do not have priority over future advances secured by mortgages recorded prior to commencement of work.

Establishes that mechanic or materialman liens have priority only over liens created after work commences, except for prior mortgages that explicitly provide for future advances.

Specifies that mechanic or materialman liens against property created prior to work commencement have priority only against separable improvements that can be removed without impairing the value or security of prior liens.

Provides that foreclosure of a prior mortgage or lien terminates subordinate mechanic or materialman liens, though the lienholders retain statutory redemption rights and rights to excess proceeds.

Effective date of January 1, 2015, and applies to all mortgages and mechanic/materialman liens existing on or created after February 23, 1990.